Mumbai, June 5 (FN Agency) India’s benchmark indices recovered partially from yesterday’s mayhem as the BSE Sensex rose over 2300 points or 3.2 percent at 74382 after the allies asserted support to Prime Minister Modi-led BJP for the formation of next government. The stock market had witnessed complete bloodbath on Tuesday after the Lok Sabha election verdict in which the BJP fell short of clear majority of 272 seats on its own even as the alliance NDA got majority 291 seats. The NSE Nifty also rose nearly 736 points to close at 22620.35. The stock market rallied as the clarity is emerging on the formation of the next government but response was subdued in the beginning but picked up as the day progressed. The 30-share Sensex was all green today with heavy weights including Reliance Industries, TCS, Infy, SBI, ICICI Bank, Airtel, HUL and L&T ended on a positive note.
The midcap and smallcap indices also rose by 4.41 percent and 2.93 percent respectively. Yesterday the Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) both sold equities in the cash segment to the tune of Rs 12,436 crore and Rs 3,319 crore respectively. Normally whenever the FIIs are net sellers, the DIIs pitch in for buying but yesterday was rare when both were net sellers, according to data available. The sources in the trading community said that investors are still very cautious after the massive sell off yesterday and keeping close watch on PSU shares in the Railways, Power and Defence. They, however, said that as the clarity emerges on the political fronts and formation of the next government the market will get its momentum back. Today all indices ended higher over the last closing. As per latest news, the BJP-led NDA is holding its crucial meeting in Delhi today and two most important NDA partners namely Chandrababu Naidu-led TDP and Nitish Kumar-led JD(U) have assured their support in favor of Modi as the next Prime Minister. The NDA, according to sources, may stake claim to form the Government today after meeting the President ending all speculations.